Greenpac Containerboard Mill, United States of America

Key Data

Canada-based packaging manufacturer Cascades broke ground on a new $430m containerboard plant in Niagara Falls, New York, US, in September 2011. Construction is expected to be completed in mid-2013. The plant will produce 430,000t of lightweight linerboard annually.

Greenpac Mill, a new company jointly established in April 2010 by Cascades' subsidiary Norampac, Caisse de dépôt et placement du Québec (Caisse), Jamestown Container and an industry partner, is building the plant.

"The new plant will produce 430,000t (540,000 short tons) of lightweight linerboard annually."

Norampac will own 59.7% interest in the plant, Caisse will own 20.2% and Jamestown Container along with the industry partner will own 20.1%.

The plant will be located in a 20 acre site.

The plant will manufacture linerboard from 100% recycled fibres, most of which will be supplied by Cascades' material recovery operations. Other raw materials such as old corrugated containers will be procured from nearby regions.

The linerboard produced by the plant will be sold to corrugated box plants and other facilities in the New York region.

About 80% of the plant's production has already been purchased by various customers. Norampac will purchase 170,000t or 39% of the plant's production.

The project was approved for a 20-year tax break by the Niagara County Industrial Development Agency (IDA) in December 2010. The new mill will replace an abandoned mill constructed in the early 1920s.

Greenpac received $60m brownfield tax credits for demolition of the old plant and redevelopment of the site. It was offered $9m in Empire Zone tax credits. The plant also received $3.7m from the New York State Energy Research and Development Authority (NYSERDA) under the Industrial and Process Efficiency Programme. The New York Power Authority (NYPA) will supply 10MW of low-cost power for the new facility.

The plant is being constructed near to an existing facility of Norampac in Niagara Falls. It has been designed to ensure optimal energy efficiency. The processed water will be treated and reused to reduce consumption. Construction of the plant is expected to generate 300 jobs in the region between 2011 and 2013.

Manufacturing process for creating linerboard sheets

The manufacturing process begins with stock preparation wherein the waste fibres will be processed, cleaned and filtered. The recycled fibres will be fed into the containerboard machine to produce linerboard sheets. The final step includes drying to produce the finished sheet of paper.

Equipment installed in the containerboard plant

The plant will be equipped with a single Metso PM 1 containerboard machine. The entire production line from headbox to roll handling will be supplied by Metso.

The machine will be one of the largest of its kind in the US and manufacture three rolls simultaneously.

The machine has a width of 328in (8.33m) and features a design enabling maximum product parameter optimisation.

The size of the machine enables manufacturing of smoother linerboard even from low quality recycled material. Metso will also supply machine pulpers, quality control systems and other equipment.

The stock preparation and effluent treatment equipment for the facility will be provided by Voith. The stock preparation equipment will use the latest cleaning technology to produce high quality recycled fibre.

Financing for Cascades' containerboard plant

The project is being financed by a $140m equity investment from the partners. Cascades is providing $83.6m and , Caisse $28.3m. Jamestown Container and the industry partner have committed $28.1m to the project.

The remaining funds for the project will come in the form of senior and subordinate debt.

GE Capital is providing $228.9m in senior debt. Subordinate debt will be provided by Caisse ($45.75m) and Cascades ($15.25m).

Contractors involved

MiniMill Technologies is providing project management services for the new plant.

Metso is supplying the containerboard machine under a $94m contract awarded in June 2011.

"The plant is being constructed near to an existing facility of Norampac in Niagara Falls."

Siemens was awarded a multimillion dollar contract in June 2011 to automate the plant and supply electric power distribution equipment.

The company will supply drives, motors, switchgear, transformers and motion control equipment as part of the contract.

Siemens automation solution will ensure data transparency at all levels and reduce operations and maintenance costs of the plant.

The contract also includes a three-year support service provision agreement.

Benefits of Cascades' containerboard plant

Linerboard forms the outer portion of corrugated cardboard and is used in shipping boxes and consumer packaging. Demand for lightweight and sustainable packaging materials is steadily growing across the world.

The market for sustainable and green packaging materials is estimated at $107bn.

Construction of the new plant will enable Cascades to supply lightweight linerboard to its customers. It will also help Cascades focus on its core segments and offer competitive products to customers.

Canada-based packaging manufacturer Cascades broke ground on a new $430m containerboard plant in Niagara Falls, New York, US, in September 2011.

Greenpac Mill will manufacture 430,000t a year of lightweight linerboard using containerboard machine supplied by Metso.

Metso’s containerboard machine will produce three rolls at the same time. The entire production line from headbox to roll handling will be supplied by Metso.